Page:United States Statutes at Large Volume 99 Part 2.djvu/286

 99 STAT. 1396

Prohibition. Prohibition.

",

Regulations.

7 USC 1421.

PUBLIC LAW 99-198—DEC. 23, 1985

may not be reduced by more than 5 percent from the level determined for the preceding crop. "(3)(A) Except as provided in subparagraph (B), if the Secretary determines that the average price received by producers for corn in the previous marketing year was not more than 110 percent of the loan and purchase level for corn for such marketing year or determines that such action is necessary to maintain a competitive market position for feed grains, the Secretary— "(i) in the case of the 1986 crop of corn, shall reduce the loan and purchase level for corn for the marketing year by the amount the Secretary determines necessary to maintain domestic and export markets for grain but not less than 10 percent of the loan and purchase level for such crop; and "(ii) in the case of each of the 1987 through 1990 crops of corn, may reduce the loan and purchase level for corn for the marketing year by the amount the Secretary determines necessary to maintain domestic and export markets for grain. "(B) The loan and purchase level may not be reduced under subparagraph (A) by more than 20 percent in any year. "(C) Any reduction in the loan and purchase level for corn under this paragraph shall not be considered in determining the loan and purchase level for corn for subsequent years. "(4)(A) The Secretary may permit a producer to repay a loan made under paragraph (1) or (6) for a crop at a level that is the lesser of— "(i) the loan level determined for such crop; or "(ii) the higher of— "(I) 70 percent of such level; •'' "(II) if the loan level for a crop was reduced under paragraph (3), 70 percent of the loan level that would have been in effect but for the reduction under paragraph (3); or "(III) the prevailing world market price for feed grains, as determined by the Secretary. "(B) If the Secretary permits a producer to repay a loan in accordance with subparagraph (A), the Secretary shall prescribe by regulation— "(i) a formula to define the prevailing world market price for feed grains; and "(ii) a mechanism by which the Secretary shall announce periodically the prevailing world market price for feed grains. "(5) For purposes of this section, the simple average price received by producers for the immediately preceding marketing year shall be based on the latest information available to the Secretary at the time of the determination. "(6) The Secretary shall make available to producers loans and purchases for each of the 1986 through 1990 crops of grain sorghums, barley, oats, and rye, respectively, at such level as the Secretary determines is fair and reasonable in relation to the level that loans and purchases are made available for corn, taking into consideration the feeding value of such commodity in relation to corn and other factors specified in section 401(b). "(b)(1) The Secretary may, for each of the 1986 through 1990 crops of corn, grain sorghums, barley, oats, and rye, make payments available to producers who, although eligible to obtain a loan or purchase agreement under subsection (a), agree to forego obtaining such loan or agreement in return for such payments. "(2) A payment under this subsection shall be computed by multiplying— '•--.!/bKS,:?,.-fr -,--^., r-r-, ^ -. t '•.-•'' !:• •,;- •.^ --..K -

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